A Texas based oil and gas drilling company Miller Energy Resources Inc., which operates in Alaska, petitioned for bankruptcy security on Thursday with a plan to hand control of the company to an offshoot of private-equity firm Apollo Global Management LLC and speculative stock investments Highbridge Capital Management LLC.
Miller Energy petitioned for section 11 security in U.S. Bankruptcy Court in Anchorage and has a deal set up with junior loan specialists Apollo Investment Corp., some piece of private-equity monster Apollo, and Highbridge, the speculation administration arm of J.P. Morgan Chase & Co.
Like various other autonomous oil-company executives who have been compelled to put their companies into bankruptcy in late month, Miller Chief Executive Carl Giesler faulted his company’s financial burdens to a limited extent on plunging oil prices. The price of global benchmark Brent rough tumbled to not exactly $45 a barrel this mid year from more than $100 a barrel a year prior.
Miller Energy, a former Tennessee company that moved its oil and gas penetrating to Alaska lately, has likewise been assailed by different issues. The Securities and Exchange Commission has blamed the company for bookkeeping extortion and in August, a group of companies that said they were owed millions from Miller’s Alaska backup moved to push the unit into bankruptcy.
Company officials had as of late been in chats with an imminent moneylender for $165 million capital implantation, Mr. Giesler said in a meeting on Friday with The Wall Street Journal, however the SEC charge and the automatic bankruptcy recording torpedoed the deal.
Confronting a Tuesday deadline to react to the automatic bankruptcy against its auxiliary, Miller Energy, with assets of $392.6 million and debts of $336.9 million, picked to petition for part 11 with backing from Apollo and Highbridge.
“We feel that this matter successfully behind the company, and we’re looking to push ahead with our rebuilding,” Mr. Giesler said.
On the off chance that endorsed by the SEC, the settlement would apply just to the company however not to the individual workers, who are no more with the company. Miller Energy didn’t admit to wrongdoing as a deal’s feature, as per securities filings.
The SEC claimed that Miller Energy, in the wake of acquiring oil and gas properties in Alaska in late 2009 for $2.5 million, exaggerated the estimation of its holdings by more than $400 million, boosting the company’s net pay and aggregate assets. It charged Miller Energy, its former chief financial officer and its chief working officer for professedly expanding estimations of oil and gas properties, which supported the company from the positions of penny stocks into one that in the long run recorded on the New York Stock Exchange, where its stock came to a 2013 high of almost $9 a share.